Fed says it could take 5 or 6 yrs to drag out of this REPUBLICAN DYSTOPIA

[JohnWxy]

http://www.usatoday.com/money/economy/2009-11-24-gdp_N.htm?csp=34


"It could take "five or six years" or longer for the economy to return to normal, the Fed said. With some industries losing jobs permanently, it revised upward its estimated "longer-run unemployment" to about 5.1% from 4.9%."

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Federal Reserve policymakers see an improving short-term economic outlook but believe the economy and job market will remain sluggish for years, according to a forecast released Tuesday.
Other reports showed home prices and consumer confidence rose slightly recently. The developments portray a steady but tepid recovery.

"The economy and housing markets are benefiting enormously from very aggressive policy efforts," says economist Mark Zandi of Moody's Economy.com. Those include last summer's cash-for-clunkers program.

The Fed expects the economy to grow a bit more robustly the rest of this year and in 2010 than it previously anticipated, according to the minutes of its Nov. 3-4 meeting. It said the economy should contract 0.1% to 0.4% in 2009, better than its June forecast of 1% to 1.5%. And it now expects growth of 2.5% to 3.5% next year, up from 2.1% to 3.3%.

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[depakid]

1. Just in time for a big dose of peak oil

[RUMMYisFROSTED]

2. I remember this declaration under Bush.

Oh, no I don't.

Probably a coincidence.

[Prometheuspan]

3. no, fo-evah.

if you have a system thats broken, it stays broken until you actually bother to fix it.

propping up vampires with 3 billion in your grandkids cash does not count.

[IrateCitizen]

5. +1

My only disagreement is with your lowball figure of 3 billion. I think it's more in the neighborhood of tens of trillions, when you add up all of the bailouts and debt guarantees on the part of the federal government.

[Prometheuspan]

6. true 'dat conservative estimate

yes, but some people go all factoid bananas on you when you try to tell them it actually ends up at 3 or 30 trillion.

[C_Lawyer09]

4. Cash for Clunkers was an example of govt answers at their worst

The program cost 23,000 per vehicle sold just to administer, is that labeled as success? And then those in govt. and elsewhere wonder, how could there be any rationale behind distrust of a 1990 page health reform bill. Invent silly super expensive work programs, and let banks refuse credit toward almost any small business. Ridiculous.